LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 76th Regular Session
  
                              March 12, 1999
  
  
          TO:  Honorable Teel Bivins, Chair, Senate Committee on
               Education
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB328  by Harris (Relating to the regulation of driver's
               training courses and the issuance of certain driver's
               licenses), Committee Report 1st House, Substituted
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  SB328, Committee Report 1st House, Substituted:  positive impact      *
*  of $157,701 through the biennium ending August 31, 2001.              *
*                                                                        *
*  The bill would make no appropriation but could provide the legal      *
*  basis for an appropriation of funds to implement the provisions of    *
*  the bill.                                                             *
**************************************************************************
  
General Revenue-Related Funds, Five-Year Impact:
  
          ****************************************************
          *  Fiscal Year  Probable Net Positive/(Negative)   *
          *               Impact to General Revenue Related  *
          *                             Funds                *
          *       2000                               $1,003  *
          *       2001                              156,698  *
          *       2002                              259,022  *
          *       2003                              259,022  *
          *       2004                              259,022  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
**************************************************************************
*Fiscal    Probable Revenue         Probable        Change in Number of  *
* Year     Gain/(Loss) from    Savings/(Cost) from State Employees from  *
*        General Revenue Fund General Revenue Fund        FY 1999        *
*                0001                 0001                               *
*  2000               $991,150           $(990,147)                 10.0 *
*  2001                991,150            (834,452)                  1.3 *
*  2002                991,150            (732,128)                  0.0 *
*  2003                991,150            (732,128)                  0.0 *
*  2004                991,150            (732,128)                  0.0 *
**************************************************************************
  
Technology Impact
  
The legislation requires the Texas Education Agency (TEA) to establish a
database that would contain information relevant to driver education
certificates, and to make it available to the Texas Department of Public
Safety (DPS).  The agency estimates that such a database would cost
approximately $88,000 for the 2000-01 biennium, and $21,000 per year in
subsequent years.
  
  
Fiscal Analysis
  
The committee substitute differs from the bill as introduced in that TEA
is granted the authority to raise the fee for the driver education
certificate from the present $4 level to a maximum of $6.

The bill would require driver education programs provided by public
school districts to follow the same regulations that apply to commercial
driver education schools in addition to provisions districts must follow
under the Education Code.


The bill includes a number of provisions with fiscal implications,
including: exemption of the driver training function of the agency from
the FTE cap; removal of all requirements for textbooks for driver
education;  and requiring the agency to develop and maintain a database
for use by the DPS and driver education providers.
  
  
Methodology
  
Implementation of this bill would put the oversight of all driver
education courses, both public school districts and commercial programs
under the Texas Driver and Traffic Safety Education Act (TDTSEA).  Under
the provisions of the bill,  the driver education activities of public
schools would be subject to both the TDTSEA and the current state and
federal laws governing public school courses of instruction
simultaneously.

This fiscal note assumes TEA would increase the fee for driver education
certificates from $2 to $4.65 to offset the implementation costs
associated with the bill, which would be allowed under the committee
substitute.
  
  
Local Government Impact
  
There are potentially significant implications to local school districts
as a result of this legislation.

School district driver education instruction would be subject to TDTSEA.
School teachers providing instruction in such courses would be required
to obtain driver education instructor licenses under TDTSEA, in addition
to the existing driver education endorsement required by the State Board
of Educator Certification (SBEC).  The $25 fee for the initial license as
well as $25 per year to renew the license would be borne by these
teachers, unless their school districts reimbursed them.  In addition,
individual instructors would bear expenses for the additional college
credit required prior to initial licensure under TDTSEA.

Although the bill exempts school districts from some of the fees
associated with regulation under the TDTSEA, districts would become
liable for fees under several situations.  Current law allows the agency
to assess civil penalties against licensees who are found to be in
violation of current statutory requirements.  The civil penalty is up to
$1,000 a day for each violation.  Public schools and instructors would be
liable for penalty assessment under the law.
  
  
Source Agencies:   
LBB Staff:         JK, CT